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TTIP Trans-Atlantic Trade and Investment Agreement Negotiations started in July 2013 Aimed at bringing down non-trade barriers and liberalisation of goods, services, investment and public procurement I.Limits public policy space II.Poses threat to public budgets III.Dubious economic benefits

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Non-tariff measures involve standards and labelling requirements for different products and are put in place to protect public health as well as the environment. Non-tariff measures such as regulations, taxes and subsidies, are employed by the Government to increase national welfare and achieve public policy objectives. Many non-tariff measures may restrict trade but can improve welfare in the presence of negative externalities

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Disturbing business bias Watchdog Corporate Europe Observatory found out: 93% of the Commission’s meetings with stakeholders during the preparations of the EU-US free trade talks were with big business The most frequent guests at DG Trade included: BusinessEurope US Chamber of Commerce, European Services Forum Transatlantic Business Council There were also numerous meetings with the arms industry, banking, medical technology, food, pharma and chemical lobbies.

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THEORY UNDERLYING EXPECTATIONS OF ARBITRATOR BIAS investment treaty arbitration does not incorporate the usual institutional safeguards of judicial independence no judicial security of tenure no prohibitions on outside remuneration by the judge no objective method of appointment to specific cases no open court principle investment treaty arbitration is uniquely asymmetrical and insulated from judicial review founds perceptions of arbitrator dependence on prospective claimants, default appointing authorities, gatekeepers in the arbitration industry, and treaty rule-makers 5

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Even legal costs are inhibiting Legal and arbitration costs average over US$8 million, exceeding US$30 million in some cases (source: OECD) Costs in perspective: The Philippines government spent US$58 million to defend two cases against German airport operator Fraport – the equivalent of the salaries of 12,500 teachers for 1 year, vaccination for 3.8 million children against diseases such as TB, diphtheria, tetanus, polio; or the building of 2 new airports.

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Investment claims bring risk of ‘regulatory chill’ – side-lining of necessary or politically opportune measures because of the potential extra costs attached to them

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“I’ve seen the letters from the New York and DC law firms coming up to the Canadian government on virtually every new environmental regulation […]. Virtually all of the new initiatives were targeted and most of them never saw the light of day.” Former Canadian government official

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“When I wake up at night and think about arbitration, it never ceases to amaze me that sovereign states have agreed to investment arbitration at all […] Three private individuals are entrusted with the power to review, without any restriction or appeal procedure, all actions of the government, all decisions of the courts, and all laws and regulations emanating from parliament.“ Juan Fernández-Armesto Arbitrator from Spain

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Capaldo: independent research based on UN Global Policy Model. Main findings Substitution of intra-EU trade with Trans-Atlantic trade will lead to disintegration in the EU Net losses of exports of up to 2% GDP GDP losses, particularly in Northern Europe Loss of 3-5,000 euros income per worker Loss of approx. 600,000 jobs in EU Reduction of labour share of GDP Loss of government revenues Increased macroeconomic instability

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Concerns over ISDS are resonating with policy-makers Yesterday, the Dutch Parliament adopted a motion calling on the Dutch governments to reject ISDS in the trade agreements with Canada (CETA) and the US (TTIP) because of the inherent social, financial and environmental risks But trade minister Ploumen continues to maintain that the benefits of TTIP outweigh the risks.

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Further reading Profiting from Crisis: How corporations and lawyers are scavenging profits from Europe’s crisis countries Profiting from injustice: How law firms, arbitrators and financiers are fuelling an investment arbitration boom

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Take action Support the self- organised Stop-TTIP European Citizens’ Initiative Sign now at: https://stop-ttip.org/sign/ We call on the institutions of the European Union and its member states to stop the negotiations with the USA on the Transatlantic Trade and Investment Partnership (TTIP) and not to ratify the Comprehensive Economic and Trade Agreement (CETA) with Canada. Main objectives: We want to prevent TTIP and CETA because they include several critical issues such as investor-state dispute settlement and rules on regulatory cooperation that pose a threat to democracy and the rule of law. We want to prevent lowering of standards concerning employment, social, environmental, privacy and consumers and the deregulation of public services (such as water) and cultural assets from being deregulated in non-transparent negotiations. The ECI supports an alternative trade and investment policy in the EU.